Air Freight Market Update
March 2025
In February 2025, EU-US air cargo demand rose 8% YoY, as shippers rushed shipments ahead of U.S. tariffs.
Global Air Cargo Update
Global Air Cargo Demand
- Early Mar’25 volumes shows a bounce back, majorly due to Asia, South and Central America regions
- Recovery observed in major exporting countries in Asia (China, South Korea, Vietnam, Hongkong, Japan) following a steep drop in tonnages end of Feb’25
Global Air Cargo Capacity
- Markets experience fluctuations in demand, capacity adjustments, and shifting trade policies.
- Capacity is growing at a moderate pace, with passenger aircraft contributing significantly to this growth as airlines increase schedules in preparation for the upcoming summer season.
Regulation/News
- European Commission has introduced reforms to simplify Carbon Border Adjustment Mechanism and sustainability reporting rules, easing compliance for businesses, including Chinese companies operating in or exporting to the EU
- Qatar Cargo targets semiconductors with new product which will utilize shock absorption technology on all ground and aircraft equipment for moving delicate semiconductor products, such as integrated circuits, chipsets, microchips, urgent semiconductor manufacturing machinery
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Regional Air Freight News
Europe
- Freighter operators continue shifting capacity to Asia to meet growing e-commerce demand.
- In response to U.S. steel and aluminum tariffs, the EU plans duties on select U.S. products, impacting AFR demand, customs processes, and rates.
Asia
- Demand and rates have stabilized, rising in March due to the usual quarter-end surge.
- Limited cargo capacity growth and ongoing uncertainty are widening the gap between fixed and floating rates, adding pressure to pricing dynamics.
Middle East and Africa
- Airfreight capacity returns to Lebanon as carriers resume flights to Beirut.
- Saudia Cargo reported a double-digit volume growth YoY YTD Feb’25 due to rising demand for the fruit from Saudia Arabia.
Americas
- Reciprocal tariffs between the U.S. and Canada might affect both economies, with ongoing talks and potential for further escalation.
- Mexico's mango season is driving higher demand for perishables, while extreme heat in Mexico City is disrupting flights.
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